January construction spending falls 0.6 pct

WASHINGTON 
Construction spending fell for a third straight month in January as a rebound in housing was not enough to offset widespread weakness in a number of commercial areas from office buildings to hotels.

The trouble that builders are facing will likely weigh on overall economic activity in coming months.

The Commerce Department said Monday that construction spending dropped 0.6 percent in January, a decline that was slightly smaller than the 0.7 percent drop that economists had expected.

Housing construction rose 1.3 percent although that gain could be temporary given the weakness seen in sales of both new and existing homes in January. Spending on nonresidential projects fell by 2.1 percent.